Kim Dotcom has been denied bail after appearing in the High Court at Auckland on Friday.
The 38-year-old Megaupload founder sought to overturn a decision in the District Court last week to deny him bail.
His appeal was dismissed on Friday.
District Court Judge David McNaughton had ruled there was a real and significant possibility the German multimillionaire would flee.
However, Dotcom says he has no intention of leaving the country.
Dotcom told the court on Friday two firearms found during the police raid on his Auckland mansion last month were there to protect his family in case they were threatened.
He was not licensed to have the firearms or trained to use them.
Dotcom says the measure was discussed with the head of his security team, Wayne Tempero, who is facing firearms charges.
Dotcom says he instructed that the guns be loaded with rubber bullets.
Tempero told the court the firearms were going to be used for skeet shooting, but using them for defence had been discussed.
Dotcom, along with three co-accused, face charges of engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering and criminal copyright infringement, according to an indictment filed in a US court.
Bail has been granted to two of Dotcom’s co-accused, Finn Batato, 38, of Germany, and Dutch national Bram van der Kolk, 29, who holds New Zealandresidency.
The other accused man is Mathias Ortmann, 40, of Germany.
It is alleged the group amassed $NZ216 million ($A169 million) in criminal proceeds through the website.
The FBI is seeking to extradite the quartet to the US, with extradition papers expected to be filed on February 22.